Edit this essay
only $12.90/page

Buy American Requirements Essay Sample

Buy American Requirements Pages
Pages: Word count: Rewriting Possibility: % ()

The Buy American Act (41 U.S.C. 10a-10d) was enacted in 1933 to encourage the federal government to buy from American companies it does not apply to professional or personal services. There are some requirements that listed under the Buy American Act (BAA) that companies need to pay attention to. The Act requires all iron, steel, and manufactured goods that are incorporated into a public building or public work be produced in the United States (U.S.). This does not require individual components and raw materials that comprise a manufactured good originate in the U.S. Only the final manufactured product, must be assembled or manufactured into it final form in the United States, that will be incorporated into the public building or public work. It also does not require machinery and tools used by project laborers be produced in the U.S. It does require you to maintain adequate records documenting all procurement in their compliance with the Buy American Act.

The restrictions are not applicable in acquisition subject to certain trade agreement. Under “Foreign Acquisitions” in the Federal Acquisition Regulations (FAR) Part 25 where most of the rules are located, it list some exceptions that Congress over the years have modified the law to justify buying foreign product when need be. Some exceptions are: if the products acquired are for use outside the U.S., if the product is not reasonable available in sufficient commercial quantities in the domestic market, the cost of the domestic product is unreasonable, and if the products are commercial information technology items. The Buy American Act does not apply to procurements under the micro purchase threshold according to the Federal Acquisitions Act of 1994. The Trade Agreement Act (FAR 52.225-12) waives the “Buy American Act” for eligible products purchased form countries that have signed an international trade agreement with the U.S. (ACE Inc.,).

I don’t think I really agree with this Act and I might be a little basis since I’m out of country (Egypt). I do think the act was made for the great depression to try and get the economy back running smoothly and get the Country back on their feet. If a contractor violates this Act it can be debarred form bidding on government contracts. In these times, I think it is very hard to ensure companies are still using the Act properly. When you have countries producing material at a cheaper cost than what it cost in the U.S., most companies will tend to lean to the lower cost for more profits.

I do not feel that these requirements are contradictory to the claims that we consider ourselves a “free market” in which our government promotes competition. When these requirements were considered it was a bad time for the economy, so the government was trying anyway possible to figure out a way to bring money back into the country. Creating requirements for agencies within the government to buy American products was a good way to put money back into the slumping economy.

The exceptions to the Buy American Requirement set by the government is really a needed break to be able to justify what the actually cost and material will be to from procuring for an outside cheaper choice. At the time it was fair and advantageous for our economy because it was working great. Over the years we are finding higher cost of American material vise foreign material that is in accordance with the requirements that are need to complete the projects. So the exceptions are fair depending on what country you are in and the requirements for the job.

Overall I think the Buy American Act was set for a good cause, but now it appears that the rest of the world reduce labor cost to get more business Buy American Requirements

The Buy American Act (41 U.S.C. 10a-10d) was enacted in 1933 to encourage the federal government to buy from American companies it does not apply to professional or personal services. There are some requirements that listed under the Buy American Act (BAA) that companies need to pay attention to. The Act requires all iron, steel, and manufactured goods that are incorporated into a public building or public work be produced in the United States (U.S.). This does not require individual components and raw materials that comprise a manufactured good originate in the U.S. Only the final manufactured product, must be assembled or manufactured into it final form in the United States, that will be incorporated into the public building or public work. It also does not require machinery and tools used by project laborers be produced in the U.S. It does require you to maintain adequate records documenting all procurement in their compliance with the Buy American Act. The restrictions are not applicable in acquisition subject to certain trade agreement.

Under “Foreign Acquisitions” in the Federal Acquisition Regulations (FAR) Part 25 where most of the rules are located, it list some exceptions that Congress over the years have modified the law to justify buying foreign product when need be. Some exceptions are: if the products acquired are for use outside the U.S., if the product is not reasonable available in sufficient commercial quantities in the domestic market, the cost of the domestic product is unreasonable, and if the products are commercial information technology items. The Buy American Act does not apply to procurements under the micro purchase threshold according to the Federal Acquisitions Act of 1994. The Trade Agreement Act (FAR 52.225-12) waives the “Buy American Act” for eligible products purchased form countries that have signed an international trade agreement with the U.S. (ACE Inc.,).

I don’t think I really agree with this Act and I might be a little basis since I’m out of country (Egypt). I do think the act was made for the great depression to try and get the economy back running smoothly and get the Country back on their feet. If a contractor violates this Act it can be debarred form bidding on government contracts. In these times, I think it is very hard to ensure companies are still using the Act properly. When you have countries producing material at a cheaper cost than what it cost in the U.S., most companies will tend to lean to the lower cost for more profits.

I do not feel that these requirements are contradictory to the claims that we consider ourselves a “free market” in which our government promotes competition. When these requirements were considered it was a bad time for the economy, so the government was trying anyway possible to figure out a way to bring money back into the country. Creating requirements for agencies within the government to buy American products was a good way to put money back into the slumping economy.

The exceptions to the Buy American Requirement set by the government is really a needed break to be able to justify what the actually cost and material will be to from procuring for an outside cheaper choice. At the time it was fair and advantageous for our economy because it was working great. Over the years we are finding higher cost of American material vise foreign material that is in accordance with the requirements that are need to complete the projects. So the exceptions are fair depending on what country you are in and the requirements for the job.

Overall I think the Buy American Act was set for a good cause, but now it appears that the rest of the world reduce labor cost to get more business Buy American Requirements

The Buy American Act (41 U.S.C. 10a-10d) was enacted in 1933 to encourage the federal government to buy from American companies it does not apply to professional or personal services. There are some requirements that listed under the Buy American Act (BAA) that companies need to pay attention to. The Act requires all iron, steel, and manufactured goods that are incorporated into a public building or public work be produced in the United States (U.S.). This does not require individual components and raw materials that comprise a manufactured good originate in the U.S. Only the final manufactured product, must be assembled or manufactured into it final form in the United States, that will be incorporated into the public building or public work. It also does not require machinery and tools used by project laborers be produced in the U.S. It does require you to maintain adequate records documenting all procurement in their compliance with the Buy American Act.

The restrictions are not applicable in acquisition subject to certain trade agreement. Under “Foreign Acquisitions” in the Federal Acquisition Regulations (FAR) Part 25 where most of the rules are located, it list some exceptions that Congress over the years have modified the law to justify buying foreign product when need be. Some exceptions are: if the products acquired are for use outside the U.S., if the product is not reasonable available in sufficient commercial quantities in the domestic market, the cost of the domestic product is unreasonable, and if the products are commercial information technology items. The Buy American Act does not apply to procurements under the micro purchase threshold according to the Federal Acquisitions Act of 1994. The Trade Agreement Act (FAR 52.225-12) waives the “Buy American Act” for eligible products purchased form countries that have signed an international trade agreement with the U.S. (ACE Inc.,).

I don’t think I really agree with this Act and I might be a little basis since I’m out of country (Egypt). I do think the act was made for the great depression to try and get the economy back running smoothly and get the Country back on their feet. If a contractor violates this Act it can be debarred form bidding on government contracts. In these times, I think it is very hard to ensure companies are still using the Act properly. When you have countries producing material at a cheaper cost than what it cost in the U.S., most companies will tend to lean to the lower cost for more profits.

I do not feel that these requirements are contradictory to the claims that we consider ourselves a “free market” in which our government promotes competition. When these requirements were considered it was a bad time for the economy, so the government was trying anyway possible to figure out a way to bring money back into the country. Creating requirements for agencies within the government to buy American products was a good way to put money back into the slumping economy.

The exceptions to the Buy American Requirement set by the government is really a needed break to be able to justify what the actually cost and material will be to from procuring for an outside cheaper choice. At the time it was fair and advantageous for our economy because it was working great. Over the years we are finding higher cost of American material vise foreign material that is in accordance with the requirements that are need to complete the projects. So the exceptions are fair depending on what country you are in and the requirements for the job.

Overall I think the Buy American Act was set for a good cause, but now it appears that the rest of the world reduce labor cost to get more business

The main points of the Buy American Requirements are; That any contract awarded by the U S federal government that requires products must be awarded to a company that get it’s products in the U S. If the product has components from a foreign country they have to be less than fifty percent of the total product.

I agree with the principal reason of the Buy American Requirement in that I think that we should give our companies in the U S the first opportunity to support the U S federal government. The U S Federal Government spends more money than all most any other industry in the U S. I think that the companies in the U S should have first crack at those dollars unless it would cause a burden on the tax payers.

I realize that our country is built off the opportunity for free trade and competition for everybody. I don’t think that the U S federal government is being contradictory in given the U S companies the first crack at the contracts being offered by the federal government. It just seems to reason that you would want to take care of the people that pay you to exsist rather than give the money to someone that could care less about you. Also it gives the federal government away to give back to those tax payers that are paying the bills for the federal government any way.

There are some exceptions to this rule like for Canada, if a Canadian company competes for contracts it is to be considered like a U S company. Since Canada is a neighboring country and the U S has agreement in place that places them on the level playing field than I am ok with that. Canada’s quality of work and being so close to the US that I would think that this exception would be ok. We have not had very many problems with the items manufactured in Canada as we have had with other countries. Prime example is the metell recall of 967, 000 toys that were sold in the U S with inspections and rigorous test before one could be sold to the public. In this case there might not have been the rigorous inspections that would have taken place had we brought American. The toys where covered with lead paint and caused a lot of health issues and death in some cases.

Conclusion
In conclusion I believe that the Buy American requirement is a excellent way to keep the US economy growing and promote job growth in the US. I don’t think they we are being contradictory to the bases of the free trade and competitive market that the foundation of the country is built upon. I think that with any policy there will be exceptions and the Buy American Agreement should be no different long as the main purpose of the agreement is not shattered by the exceptions.

References

Murphy, J. (2009) Guide To Contract Pricing: Cost And Pricing Analysis For Contracts, Subcontracts, And Government Agencies (5th ed.) Vienna, VA Management Concepts

Retrieved October 28, 2011 from https://www.jacksonkelly.com/JK/pdf/zirkelbach.pdf

Retrieved October 28, 2011 from http://www.nytimes.com/2007/08/02/business/02toy.html

Search For The related topics

  • trade